Minority Business Loan Programs

While the SBA does not offer grants to start or expand small businesses, it does guarantee loans of up to $250,000. Once you've been approved for an SBA-guaranteed loan, the next step is to find a lender that is approved by the SBA. Read about SBA Loan Key Requirements.

Almost any bank is a potential lender, although eligibility requirements vary among lending institutions. Of the banks SBA works with, Bank of America has been ranked as a top lender to minority groups.

Wells Fargo is another minority- and woman-friendly bank, having pledged to lend a billion dollars to African-American, Latino, and women-owned business. To qualify, you must be a profitable business, have been in business for at least two years, have good personal and business credit records, and not have declared bankruptcy in the past 10 years. Lines of credit can go from $5,000 to as much as $100,000.

Another option for business loans to minorities are small business investment companies (SBICs). These are privately owned and managed investment firms that offer venture capital and startup financing to small businesses. SBICs are licensed and regulated by the SBA. For more information about SBICs, visit the SBA's SBIC Web site.